Allot (ALLT) AI Stock Analysis

• Market Cap: $307.19M
• Dividend Yield: N/A
• Average Volume (3M): 447.47K
• Price to Earnings (P/E): 86.8
• Beta (1Y): 1.65
• Revenue Growth: 7.51%
• EPS Growth: N/A
• Country: US
• Employees: 523
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.08
• Shares Outstanding: 48,452,618
• 10 Day Avg. Volume: 692,518
• 30 Day Avg. Volume: 447,474
• PEG Ratio: -0.75
• Price to Book (P/B): 3.82
• Price to Sales (P/S): 4.25
• P/FCF Ratio: 27.95
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 2.50
• Enterprise Value/Gross Profit: 3.56
• Enterprise Value/Ebitda: 27.64
• 1Y Price Target: $13.38
• Price Target Upside: 111.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.31
• Revenue Forecast (FY): $114.63M

• Rating: 62 Neutral
• Price Target: $7.50 ▲(18.30% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by improved financial performance (profitability, cash flow, and de-leveraging) and a positive 2026 outlook from the earnings call. These strengths are tempered by weak technicals (downtrend across moving averages with negative MACD) and a rich valuation (high P/E with no dividend yield provided).

Positive Factors

Recurring SECaaS ARR Growth

Rapid SECaaS ARR expansion shifts revenue mix toward recurring, high‑margin subscription streams. This improves revenue visibility, supports predictable cash generation and upsell economics with CSP partners, and strengthens a structural transition from project to subscription revenues over coming years.

Improved Cash Generation

A meaningful reversal to positive operating and free cash flow after multi‑year cash burn increases self‑funding capacity and reduces refinancing risk. Strong cash generation supports planned S&M and R&D investment while preserving operational flexibility across the sales cycle.

Strengthened Balance Sheet

Substantial de‑leveraging and higher equity materially improve financial flexibility and resilience. A conservative capital structure plus a large cash buffer enables multi‑year project deployments, supports product launches and backlog-enabled execution without near‑term liquidity constraints.

Negative Factors

Long CSP Sales & Deployment Cycles

Revenue recognition and ARR expansion depend on CSP/MVNO launch timing and complex integrations. Long sales and deployment cycles make revenue cadence lumpy, delay monetization of large wins, and increase execution risk for investments made today to capture future subscriber monetization.

Supply‑Chain & Component Cost Pressure

Elevated memory and server costs tied to AI demand can raise COGS for hardware‑dependent offerings, pressuring gross margins despite high software mixes. Sustained component inflation would erode margin expansion and require either higher pricing or absorbing costs, straining profitability sustainability.

Historical Profitability Volatility

The 2025 turnaround shows progress, but prior multi‑year losses and uneven revenue trends highlight execution risk. Durability of margins and cash flow depends on maintaining SaaS growth and converting backlog; a reversion would quickly undermine recent balance sheet and cash improvements.

Allot Business Overview & Revenue Model

Company Description

Allot Ltd. provides network intelligence and security solutions to protect and personalize the digital experience in Europe, Asia, Oceania, the Middle East, Africa, and the Americas. The company offers Allot Secure Management platform that includes Allot NetworkSecure, Allot HomeSecure, Allot DNSecure, EndPoint Secure, Allot BusinessSecure, Allot IoTSecure, and Allot Secure Cloud. It also provides Allot DDoS Secure/5G Protect, a solution that offers attack detection and mitigation services; integrated network intelligence solutions; and centralized management solutions, such as Allot NetXplorer for providing a central access point for network-wide monitoring, reporting, analytics, troubleshooting, accounting, and quality of service policy provisioning. The company markets its products through direct sales, distributors, resellers, original equipment manufacturers, and system integrators to carriers, mobile and fixed service providers, cable operators, satellite service providers, private networks, data centers, financial and educational institutions, and governments. Allot Ltd. was formerly known as Allot Communications Ltd. and changed its name to Allot Ltd. in October 2018. The company was incorporated in 1996 and is based in Hod Hasharon, Israel.

How the Company Makes Money

Allot generates revenue through a combination of software licenses, subscription services, and professional services. Key revenue streams include the sale of its network security and management solutions, which are offered on a recurring subscription basis, allowing for predictable revenue flows. Additionally, Allot provides professional services such as installation, integration, and ongoing support, which further contribute to its earnings. The company has established significant partnerships with various telecommunications operators and technology providers, enhancing its market presence and driving additional sales through bundled offerings and joint go-to-market strategies.

Allot Financial Statement Overview

Summary

2025 marks a meaningful fundamental reset: profitability returned, operating/free cash flow jumped (OCF ~$17.8M; FCF ~$15.5M), and leverage improved sharply with debt reduced and equity higher. The key offset is durability risk given prior years of losses, cash burn, and inconsistent revenue momentum.

Income Statement

Profitability has materially improved: the company moved from sizable losses in 2022–2024 to positive operating profit and net income in 2025 (revenue ~$102.0M; net income ~$3.7M). Revenue growth also re-accelerated in 2025 (~3.5%) after a flat-to-declining period and a sharp contraction in 2022–2023. Offsetting this, the earnings profile has been volatile across the period, with multiple years of meaningful losses and inconsistent top-line momentum, which lowers confidence in durability of the turnaround.

Balance Sheet

Balance sheet leverage improved dramatically: total debt fell to ~$11.1M in 2025 from ~$46.3M in 2024, while equity increased to ~$113.4M (assets ~$172.7M). This implies a much more conservative capital structure and meaningfully better financial flexibility versus prior years when debt was close to equity. The main drawback is that the balance sheet has been through large swings over time (assets and equity declined from 2021–2022 levels before rebounding), and returns on equity were negative in prior periods due to losses.

Cash Flow

Cash generation strengthened substantially in 2025, with operating cash flow of ~$17.8M and free cash flow of ~$15.5M, up strongly versus 2024 (operating cash flow ~$4.8M; free cash flow ~$2.7M) and a clear reversal from negative cash flow years (2021–2023). This supports the quality of the recent earnings recovery and improves self-funding capacity. Still, the historical pattern includes multiple years of cash burn, so the key risk is whether the 2025 step-up is sustainable through the cycle.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	101.99M	92.19M	93.15M	122.74M	145.60M
Gross Profit	72.55M	63.69M	52.69M	82.91M	101.05M
EBITDA	7.65M	2.12M	-55.13M	-22.75M	-7.54M
Net Income	3.71M	-5.87M	-62.80M	-32.03M	-15.04M
Balance Sheet
Total Assets	172.70M	139.64M	138.16M	212.95M	203.41M
Cash, Cash Equivalents and Short-Term Investments	84.44M	57.86M	53.05M	85.35M	83.97M
Total Debt	11.13M	46.34M	41.93M	44.70M	8.25M
Total Liabilities	59.35M	89.83M	88.40M	110.98M	77.41M
Stockholders Equity	113.35M	49.81M	49.76M	101.97M	126.01M
Cash Flow
Free Cash Flow	15.50M	2.71M	-32.23M	-38.21M	-16.01M
Operating Cash Flow	17.79M	4.83M	-29.74M	-32.56M	-8.37M
Investing Cash Flow	-28.53M	-2.88M	31.63M	-6.51M	-6.32M
Financing Cash Flow	11.14M	1.00K	0.00	39.66M	2.81M

Allot Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLT, the sentiment is Negative. The current price of 6.34 is below the 20-day moving average (MA) of 9.64, below the 50-day MA of 9.90, and below the 200-day MA of 9.14, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 25.33 is Positive, neither overbought nor oversold. The STOCH value of 18.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALLT.

Allot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALLT	62 Neutral	$307.19M	86.85	4.54%	―	7.51%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BAND	60 Neutral	$465.15M	-34.27	-3.62%	―	7.42%	34.42%
DFDV	58 Neutral	$104.03M	1.39	56.66%	―	313.35%	―
BLZE	56 Neutral	$216.95M	―	-31.85%	―	15.73%	40.14%
GRRR	48 Neutral	$267.95M	―	―	―	―	―
PDYN	41 Neutral	$295.52M	-4.15	-110.11%	―	-44.07%	25.75%

Allot Corporate Events

Allot Posts Record 2025 Profit as SECaaS ARR Jumps 69%

Allot reported strong fourth-quarter and full-year 2025 results on February 25, 2026, highlighting a sharp acceleration in its Security-as-a-Service business and a successful operational turnaround. Quarterly revenue rose 14% year over year to $28.4 million, while SECaaS annual recurring revenue reached $30.8 million, up 69%, and GAAP operating profit jumped to $2.6 million, supported by higher margins and a doubling of non-GAAP operating income.

For 2025, revenue grew 11% to $102 million and Allot swung from a GAAP operating loss of $6 million in 2024 to a $3.6 million operating profit, its highest profit in over a decade, with non-GAAP operating income climbing to $8.9 million. The company generated $17.8 million in operating cash flow, lifted its cash balance to $88 million with no debt, and positioned its cybersecurity-first strategy as a key competitive differentiator ahead of an expected revenue increase to $113–$117 million in 2026.

The most recent analyst rating on (ALLT) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Allot stock, see the ALLT Stock Forecast page.

Allot Ltd. Concludes Annual General Meeting with Key Approvals

On December 15, 2025, Allot Ltd. held its Annual General Meeting of Shareholders at its headquarters in Hod-Hasharon, Israel. During the meeting, shareholders voted on various agenda items, with all but one receiving the required majority approval. This outcome reflects the company’s ongoing engagement with its shareholders and may influence its strategic decisions moving forward.

The most recent analyst rating on (ALLT) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Allot stock, see the ALLT Stock Forecast page.